Lionsgate Secures Home Entertainment Deal With EuropaCorp.8 Feb, 2017 By: Erik Gruenwedel
Studio/distributor has high franchise hopes for ‘John Wick: Chapter Two,’ following the original’s strong retail results
As Lionsgate continues to meld Starz Distribution with its home entertainment operations into a new distribution arm, the studio/distributor Feb. 8 quietly announced a deal with French studio EuropaCorp.
CEO Jon Feltheimer, on the company’s third-quarter (ended Dec. 31, 2016) webcast, cited upcoming retail distribution of EuropaCorp.’s sci-fi action film Valerian and the City of a Thousand Planets from director Luc Besson.
STX Entertainment will release the movie July 21 theatrically in the United States.
Other EuropaCorp titles included in the multiyear deal include The Circle (April 28) with Emma Watson and Tom Hanks, and Renegades (Sept. 1) with Oscar-winner J.K. Simmons, among others.
Separately, Lionsgate is bullish on the long-term franchise potential for Keanu Reeves actioner John Wick: Chapter Two, which bows theatrically Feb. 10.
“The reception to the first movie, John Wick, in home entertainment really bodes well for the launch [of John Wick 2], which we think is going to be a really strong franchise for us,” Feltheimer said.
Indeed, John Wick, which generated $86 million at the 2014 global box office on a budget of $20 million, generated $23.3 million in combined DVD/Blu-ray Disc sales — the 31st best-selling disc in 2015, according to The-Numbers.com.
Finally, Lionsgate reported a loss of $31 million on revenue of $752 million, compared with income of $33 million on revenue of $671 million during the previous-year period.
The loss was largely due to $52 million in restructuring and other costs associated with the Starz acquisition, including $22 million in severance costs and $27 million of transaction-related costs. There was also a $28 million loss on extinguishment of debt in connection with the Starz transaction financing. The quarter also included a $20 million gain on Lionsgate's investment in Starz stock.